Please use the following information to answer the following valuation questions for ZYX Company. Please use an expected market return (on the stock market) of 10%. NOTE: You may use your notes for this problem.

30 year Treasury bond rate is 3%

Beta is 1.35

Current stock price is $6.00 per share

Interest rate is 5%

Tax rate is 25%

Estimated cash flows for the next year and into the future are $40 million

Total liabilities are $200 million

Outstanding shares are 80 million

1. What is the weight of debt? __________%

2. What is the weight of equity? __________%

3. What is the after tax cost of debt? __________%

4. What is the cost of equity? __________%

5. What is the WACC? __________%

6. What is the no growth estimated market value of the total assets? $__________

7. What is the no growth estimated market value of the total equity? $__________

8. What is the no growth estimated market value per share? $__________

9. What is the implied growth rate, based on the current market value? __________%

10. What is the estimated market value per share assuming a 1.5% projected growth rate? $__________